Besides royalty rates, are all other fees uniform for each of the Browns Chicken franchises offered?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brown has negotiated royalty rates on a case by case basis, depending on the circumstances involved. Otherwise, all fees were uniform for each of the franchises offered.
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, most fees are uniform for each franchise, although royalty rates are negotiated on a case-by-case basis. The document specifies that Browns Chicken negotiates royalty rates depending on the circumstances. Additionally, Browns Chicken may reduce or waive fees as part of community service projects, and has waived or reduced royalties for specific franchisees such as the training facility store and a new franchisee during their initial operation stage.
Other fees that a Browns Chicken franchisee may encounter include an advertising fee of 4% of gross sales, a video gaming royalty fee of 10% of gross sales from video gaming revenue, and advertising from video gaming sales at 4% of gross sales from video gaming. There are also fees for additional training, audits, assignments or transfers ($5,000), renewal ($5,000), interest on overdue amounts, and expenses of enforcement.
Additional fees may arise for a Browns Chicken franchisee, such as a store development and set up fee up to $50,000, a lease surcharge up to 15% of the rent Browns Chicken pays, a processing fee of $50 for dishonored bank drafts, and a penalty of $100 per day for non-compliance with the Franchise Agreement. There are also potential costs for testing fees related to supplier evaluations and document name change fees of $500. A liquidated damaged fee of $10,000 is payable if a franchisee abandons their store or transfers it without consent. These fees are generally applied uniformly, except for the negotiated royalty rates.